Self employed advice - tax amounts

zekeriyasmum

Thanks for your help, am going now
really appreciate it !!!

Mikeyorks

zekeriyasmum wrote: »

as it means we have more money than we thought

But do remember ...... that when his 08-09 liability is due 31st Jan 10 - that is not the end of it? You will also be required to pay 50% of the (08-09) liability on account of the following year (09-10). And a further 50% on the 31st July 2010.
Those payments on account are then deducted from the sum he owes (for 09-10) 31st Jan 11 ...... but he will also owe 50% of the 09-10 liability on account of 10-11 on 31st Jan 11 and again 31st July 11 ...... and so it goes on!

It's just that the first payment(s) on account ..... tend to trip people up? So make sure your excess covers those first payments on account.

mrs_deadline

Same thought crossed my mind, Mikeyorks, but they should be fine if they've really saved 30% since day one.

OP, although the deadline is this time next year, you can file online any time after 5th April 2009. It's a good idea to file as early as possible because then you'll know for sure what amounts are due (tax, NIC and prepayments on account for current year). The online system tells you straight away what you owe, then if you need less than you've saved - well done

Cook_County

There may be other ways of saving tax, e.g.

1. By claiming use of home as office
2. By paying & claiming for wages payable to the partner
3. By choosing a more advantageous financial year.
4. Claiming capital allowances, eg on computers